Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US markets bounced up off sessions lows roughly 1.2% to wipe away most of the losses into the close. CPI (inflationary numbers) came in as expected but will continue to put pressure on interest rate rise expectations. Bond yields edged lower while the USD rallied.
Note : The price action of late has been very choppy and reactive with levels being flushed constantly.
The SPI200/ASX200 both were largely range bound in overnight trade. Resistance held at 7120 on the ASX200 and 7123 on the SPI200. Support is coming in at 7067 on ASX200 and 7074 on the SPI200 so these are the levels I will be watching on the open. If the resistance zones hold on the open, then we may have a lower high confirmed and a Friday selloff. The DOW held off the sellers as price was supported early in the session to see a grind higher into the close. The action ended around 33177 so this will be the key level in Asian market trade. Will be looking for either a higher low and the action to extended higher or a reaction down off the level and a lower high. Hang Seng remains unhappy and pushing back down into previous key lows around 20160. Price held up off the level…thanks mainly to the late rally in the US…but may look to flush into the level on the open. Will be watching for a flush higher and then weakness into the lows. The index will open around 400 points lower. The Nikkei also struggled overnight as price rejected any push up into 25506. Looking for an early extension into 25175 or for a minor flush higher and then a lower high to hold for a short trade…will need to assess the open. The Index will come under pressure on the open and start down around 350 pts.
Cryptos fell away from highs during the Asian market session and held the losses into the close. Bitcoin found some support off 39000 but could not find enough buyers to lift off the level so may find more selling today for an extension below 39000. Ethereum was much the same bouncing off 2557 but fending off any major buyers above 2609.
Spot Gold managed to grind its way up and off 1981 but was capped around 2003. The action could really go either way here so will be looking for a higher low off 2003 for a long trade or lower highs and a push back down to 1973.
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Hang Seng Index